Eldorado Gold withdraws planned $500 million senior notes offering

By Paul A. Harris

Portland, Ore., Nov. 16 - Eldorado Gold Corp. announced in a Friday press release that it withdrew its proposed $500 million offering of eight-year senior notes (Ba3/BB) due to market conditions.

"Deteriorating conditions in the debt capital markets led us to conclude that the proposed offering of senior notes would not be in the best interest of shareholders under the terms currently available," stated Paul Wright, the company's chief executive officer.

"We had hoped to opportunistically access the debt capital markets to augment our already strong balance sheet, but we will only do so in a disciplined manner."

No official price talk was heard on the deal. However during the course of a roadshow which began on Tuesday the deal had been discussed in a yield context of 6½% to 6¾%, according to a buyside source.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc. and Bank of America Merrill Lynch were the joint bookrunners.

The Vancouver, B.C.-based gold producer had planned to use the proceeds to fund mine development, to repay its revolver and for general corporate purposes.

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